This story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here.Swiss watchmaker Swatch will partner with CSEM to develop an ecosystem from the ground up for connected objects, according to Strategy Analytics.The foundation of the new ecosystem will be a new operating system (OS), for now dubbed Swiss OS, as a competitor to Apples watchOS, Android Wear, and Samsungs Tizen. The first products are slated for a 2018 release, EE Timesreports. However, Swatch is entering an increasingly crowded and rapidly decelerating smartwatch market. Building an OS from the ground up means that Swatch and CSEM can ensure it is more tightly integrated with the device, which could have several benefits:Increased security: Collected devices including smartwatches, collect a massive amount of data pertaining to things like user location, health, and payment info. However, a 2015 study by Hewlett Packard found that, at the time, 100% of smartwatches were vulnerable to malicious attacks. One objective of the initiative is to improve data security on connected devices, with a focus on keeping data collected by these devices away from Western security agencies.Ultra-low power: Smartwatches require a lot of power to run largely because of the touchscreen interface, as well as the burden of running apps. Swatch is aiming for improved low-power operation, which should increase self-sufficiency by cutting down on the need to recharge the device.Durability: A common theme among connected devices is designed obsolescence, which is driven by software updates that eventually need the latest device to run. Swiss OS is being designed to last without needing regular updates, like those rolled out by Android, for example, thereby increasing its longevity.Nevertheless, Swatch faces an uphill battle against much larger competitors such as Apple, Android, and Samsung. Swatch is likely hoping that addressing existing shortcomings in the smartwatch market as well as leaning on its well-known brand name, will help accelerate adoption of Swiss OS devices. Still, Swatch controls less than 1% of the global smartwatch market, Strategy Analytics notes, while Apple, Android, and Samsung control 88% combined, according to IDC estimates.When they first broke onto the scene, smartwatches were touted as the next generation of devices set to transform consumers lives. And brands, service providers, and the healthcare segment were ready to capitalize on their always on nature, which promised to provide greater insight into consumer habits. But while the market initially grew rapidly, it has begun to cool off, as consumers become impatient with the technology's lack of distinct capabilities, such as LTE connectivity and device-specific apps.In the next few years, the smartwatch market will likely see the addition of new functionality and increased capabilities, which will see the device shipments grow at an annualized rate of 18% through 2021 to reach 70 million units.However, smartwatches are reliant on a number of factors in order to generate any sort of meaningful consumer demand. Until such a time, adoption of smartwatches will likely be sluggish, as consumers wait for vendors to produce products that can run independently from their phones and provide more useful functions. So what does this mean for the device championed as the replacement for the smartphone' Should vendors manage to implement a lower price point, better functionality, and expanded use cases, there is a vast potential for accelerated global growth. Moreover, because of the low adoption rate thus far, there is still ample opportunity for new entrants to join the market, and capture mind share.Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on smartwatches that examines all areas of the smartwatch market, includinga five-year forecast, key growth trends, market leaders,consumer demand, and more. Italso discusses the need for the inclusion of standalone capabilities in smartwatches, as well as the importance of bringing both better apps to the devices and greater consumer awareness of capabilities. Lastly, it explores the nascent smartwatch app market, including its shortcomings and how it can be improved.Here are some of the key takeaways from the report:Demand for smartwatches has cooled as consumerswait for better functionality. But early demand suggests the market could take off when functionality improves.Apple will continue to drive a large portion of the overall market, however, Android Wear devices will quickly catch up as emerging markets begin to adopt the technology.Health and fitness remain a dominant segment of the smartwatch market, providing healthcare workers and hospitals with savings opportunities. As technology and app development advances, the benefits of smartwatches within these segments will become even more robust.The future of the smartwatch market remains somewhat unclear, however, there is profound opportunity for businesses and developers to begin exploring the nascent smartwatch market. This will give them a head start against competitors.In full, the report:Forecasts smartwatch shipments through 2021 for both overall device shipments as well as by operating system.Provides an overview of the main players in both hardware and software, and how they will size up in the future.Demonstrates the effect of Apples entrance into the market, and why it's unlikely to dictate future growth.Gives insight into what technologies need to be worked on in order to incentivize future growth,the effects they will have on the market, and how they can be used.And much more.Interested in getting the full report' Here are severalways to access it:Subscribe to anAll-Accesspass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensureyou stay ahead of the curve and benefit personally and professionally. >> Learn MoreNowAccess the Ultimate Mobile, Apps & PlatformsReports Bundle and save 95% today. You will gain immediate access to the Chatbots Explainer and 75 othercomprehensiveresearch reportscovering the most important topics impacting the mobile. >> Bundle & Save NowPurchase & download the full report fromour research store. >> Purchase & Download NowJoin the conversation about this story
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